The reduced cost of items as the fall in the GST rates came into effect from Monday has ignited a "wave of happiness" among people, the BJP said and cited higher tax on same products during the Congress-led government to slam its criticism of the GST reforms.

Hitting back at the Congress for its "Gabbar Singh Tax" criticism of the GST, Union minister and BJP leader Ashwini Vaishnaw cited the incidence of much higher rates during the UPA government to throw "Gabbar Singh ke bade dada" (the grandfather of Gabbar Singh) barb.

Giving examples, he said the tax rates on cement, sanitary pad, paint, footwear, TV and fridge during the Congress-led UPA rule were 30, 13, 30, 18, 30 and 30 per cent respectively. The corresponding rates now are 18, 0, 19, 8, 18 and 18 per cent, he told reporters, asserting that the reduced costs have led to a "saving festival" and sparked a wave of happiness.

In a swipe at the Opposition, he said its unhappiness with the GST and the current reforms is "natural" because all it did was talk and took no action when it was in power. Prime Minister Narendra Modi took states into confidence to roll out the unified tax regime in 2017, doing away with a complex web of levies, he added.

Consumer Affairs Secretary Nidhi Khare warned companies that they will face strict action if they fail to pass on the benefits of reduced Goods and Services Tax (GST) rates to consumers.

In an interview with NDTV Profit, Khare said that any company not reflecting the revised GST rates in their prices will be treated as indulging in "unfair practice". She added that the government is fully equipped to monitor compliance.

"If we feel reduced GST hasn't been passed on, it will be treated as an unfair practice. We will take class action against those who don't pass on GST benefits," she said, assuring that consumer complaints will also be addressed promptly.

Food And Beverages

Chapati, paranthas, ultra-high temperature milk, chena/paneer, pizza bread, khakra: Zero tax.

Common items (butter, ghee, dry nuts, sausages, meat, sugar confectionery, jam, fruit juice, ice cream, biscuits, cereals): 5 per cent.

Plant-based and soya milk drinks: 5 per cent.

Other fats and cheese: 5 per cent.

Beauty And Fitness Services

Salons, spas, gyms, health clubs, yoga: 5 per cent.

Household And Personal Care

Tooth powder, shampoo, talcum powder, toothpaste, toothbrushes, soaps, hair oil, kitchenware, tableware, utensils, umbrellas, bicycles, bamboo furniture: 5 per cent.

Consumer electronics (Air-Conditioners, TVs, dishwashers): 18 per cent.

Stationery And Footwear

Maps, charts, globes, pencils, crayons, exercise books, erasers: no tax.

Footwear and textiles: 5 per cent.

Healthcare

Life-saving drugs, medical devices, thermometres, oxygen, diagnostic kits, glucometers, corrective spectacles: 5 per cent or nil.

Insurance And Travel

Life and health insurance: Zero tax.

Third-party goods vehicle insurance: 5 per cent.

Hotel rooms up to Rs 7,500, economy flight tickets: 5 per cent.

Vehicles And Auto Components

Motorcycles up to 350 cc: 18 per cent, down from 28 per cent.

Small hybrid cars: benefit from lower rates.

Electric vehicles: 5 per cent GST.

Auto components: 18 per cent, down from 28 per cent.

Small petrol, LPG, CNG vehicles and diesel up to 1,500 cc: 18 per cent.

Construction And Machinery

Cement: 18 per cent.

Sewing machines and parts: 5 per cent.

Agricultural machinery, trailers, fertiliser inputs, biopesticides, tractor components: 5 per cent.

Bajaj Auto Ltd. announced that it is building on the Government's decision to reduce GST on motorcycles under 350cc by not only passing on the full benefit to buyers but also adding 50 percent financing benefits from its side. This means that Pulsar buyers now gain 1.5 times the GST benefit, further enhancing the value of ownership during the festive season.

In line with this commitment, Bajaj Auto has introduced the Hattrick Offer, under which customers receive three distinct advantages: the entire GST reduction passed on in full, zero processing charges, and comprehensive insurance benefits. Together, these ensure that prospective Pulsar riders enjoy maximum value without additional costs. Under the Hattrick Offer, buyers of the Pulsar NS125 ABS stand to gain savings of Rs 12,206, while those choosing the Pulsar N160 USD enjoy benefits worth Rs 15,759 in Delhi.

Delhi Chief Minister Rekha Gupta on Sunday praised Prime Minister Narendra Modi for the landmark GST reforms and his inspirational call to the countrymen to make every home a symbol of Swadeshi and to decorate every shop with Swadeshi. She also said that reforms have made "education simpler and accessible".

"Under the leadership of the Honorable Prime Minister Shri 

@narendramodi ji, the #NextGenGST reforms have made education even simpler and more accessible. The decision to make children's stationery tax-free is directly benefiting every family. This will reduce the financial burden on parents. This historic step by the Prime Minister is a strong foundation for the bright future of the coming generations," she wrote on X.

With nearly 98% of India's two-wheeler market dominated by scooters and motorcycles under 350cc, the GST rate cut from 28 per cent to 18 per cent is a major boost for budget-conscious buyers. Popular models like the Hero Splendor, Honda Activa, Bajaj Pulsar, TVS Apache, and Royal Enfield Classic 350 are set to become significantly cheaper, encouraging first-time buyers and fuelling festive season sales.

Honda Two-Wheelers - Up to Rs 18,887 off (under 350cc)

Activa 110: Rs 7,874 cheaper

Dio 110: Rs 7,157 off

Activa 125: Rs 8,259 cut

Dio 125: Rs 8,042 reduction

Shine 100: Rs 5,672 cheaper

Shine 100 DX: Rs 6,256 cut

Livo 110: Rs 7,165 lower

Shine 125: Rs 7,443 cut

SP125: Rs 8,447 off

CB125 Hornet: Rs 9,229 cheaper

Unicorn: Rs 9,948 cut

SP160: Rs 10,635 lower

Hornet 2.0: Rs 13,026 off

NX200: Rs 13,978 cheaper

CB350 H'ness: Rs 18,598 off

CB350RS: Rs 18,857 cut

CB350: Rs 18,887 cheaper

The GST on mobile phones remains unchanged to 18 per cent.

The India Cellular and Electronics Association (ICEA), however, called for the inclusion of mobile phones and components in the 5 per cent GST slab reserved for essential goods. Calling the current 18 per cent GST slab "regressive", ICEA argued that mobile phones, essential for digital access for over 90 crore Indian citizens, should be classified as 'necessities' in the upcoming GST reform.

"The mobile phone is no longer an aspirational good; it is an essential digital infrastructure for education, healthcare, financial inclusion, and governance. It should rightly be taxed at 5 per cent GST, in line with the Prime Minister's GST reform agenda and his vision of a $500 billion electronics ecosystem," said Pankaj Mohindroo, Chairman, ICEA.

The GST on bus fares have been brought down to 18 per cent under the new structure. "Cuts upfront cost of buses and minibuses, making them more accessible for fleet operators, schools, corporates, tour providers, and state transport undertakings. Will help bring down ticket fares, especially in semi-urban and rural routes," a government release said.

It added that the new rates also "encourage a shift" from vehicles to shared or public transport, reducing congestion and pollution. It supports fleet expansion and modernisation, improving comfort and safety standards in public transport.

As the new GST rates came into effect, Prime Minister Narendra Modi interacted with local taxpayers in Arunachal Pradesh.

Personal Care and Household Goods

5 per cent tax: Toothpaste, toothbrushes, talcum powder, shaving cream, hair oil, soaps, toilet bars, face powders, after-shave lotions, utensils, kitchenware, umbrellas, bicycles, and bamboo furniture.

These categories previously attracted 12 per cent or 18 per cent tax.

Beauty, Fitness, and Lifestyle Services

5 per cent tax: Spas, salons, gyms, yoga centres, and health clubs - earlier taxed at 18 per cent. However, these services will no longer enjoy input tax credit.

The much-anticipated GST 2.0 rollout officially kicked in today, reshaping the tax landscape for India's healthcare sector. For millions of households, the headline change is straightforward: common medicines, diagnostic devices, and insurance premiums just got cheaper. 

The GST Council had announced these reforms earlier this month, aiming to simplify tax structures while easing the financial burden on consumers. The move comes after years of industry lobbying and public demand for healthcare relief. Under the new structure, all individual life and health insurance premiums are now GST-free (previously taxed at 18%), and most medicines and many medical consumables have been brought under a uniform 5% slab instead of the higher 12-18% range. Essential, life-saving drugs remain completely exempt.

Union Home Minister Amit Shah has said the new GST structure, which came into effect today, is a "trust-based tax system" that would increase both production and consumption in the country. While speaking to NDTV's Editor-in-Chief Rahul Kanwal, Mr Shah asserted that there would be a "new era of mutual trust" between the people and the government.

"Electricity, cement, daily consumption of food, healthcare, insurance, automobiles, cars, trucks, tractors, and all products used in agriculture will be cheaper. This is a very big decision. People will start receiving benefits today onwards. I believe that this will increase production and consumption. There will be a trust-based tax system in the country," Mr Shah said.

According to Mr Shah, with the GST reforms, the people of India would believe that the tax is "not to increase the government's income" but to "run the country".

"Whenever there is an increase, the government reduces it. Prime Minister Narendra Modi has made this big decision. There will be trust in the 1.3 billion people of the country that tax is not to increase the government's income. It is to run the country. I believe that there will be a new era of mutual trust between the lender and the government," he said.

Zero tax: Pencils, sharpeners, crayons, exercise books, erasers, maps, charts, and globes.

5 per cent tax: Footwear and textiles.

Maruti Suzuki - Up to Rs 2.25 lakh off

Alto K10: Rs 40,000 cheaper

WagonR: Rs 57,000 cut

Swift: Rs 58,000 cheaper

Dzire: Rs 61,000 lower

Baleno: Rs 60,000 cut

Fronx: Rs 68,000 cheaper

Brezza: Rs 78,000 cut

Eeco: Rs 51,000 cheaper

Ertiga: Rs 41,000 cut

Celerio: Rs 50,000 cheaper

S-Presso: Rs 38,000 cut

Ignis: Rs 52,000 cheaper

Jimny: Rs 1.14 lakh lower

XL6: Rs 35,000 cut

Invicto: Rs 2.25 lakh cut

Tata Motors - Up to Rs 1.55 lakh off

Tiago: Rs 75,000 cheaper

Tigor: Rs 80,000 reduction

Altroz: Rs 1.10 lakh cut

Punch: Rs 85,000 lower

Nexon: Rs 1.55 lakh cheaper

Harrier: Rs 1.40 lakh cut

Safari: Rs 1.45 lakh cheaper

Curvv: Rs 65,000 reduction

Toyota - Up to Rs 3.49 lakh off

Fortuner: Rs 3.49 lakh cut

Legender: Rs 3.34 lakh lower

Hilux: Rs 2.52 lakh cheaper

Vellfire: Rs 2.78 lakh cut

Camry: Rs 1.01 lakh cheaper

Innova Crysta: Rs 1.80 lakh cut

Innova Hycross: Rs 1.15 lakh reduction

Other models: Up to Rs 1.11 lakh off

Range Rover - Up to Rs 30.4 lakh off

Range Rover 4.4P SV LWB: Rs 30.4 lakh cheaper

Range Rover 3.0D SV LWB: Rs 27.4 lakh cut

Range Rover 3.0P Autobiography: Rs 18.3 lakh lower

Range Rover Sport 4.4 SV Edition Two: Rs 19.7 lakh off

Velar 2.0D/2.0P Autobiography: Rs 6 lakh cheaper

Evoque 2.0D/2.0P Autobiography: Rs 4.6 lakh off

Defender range: Up to Rs 18.6 lakh cut

Discovery: Up to Rs 9.9 lakh off

Discovery Sport: Rs 4.6 lakh cheaper

Kia - Up to Rs 4.48 lakh off

Sonet: Rs 1.64 lakh cheaper

Syros: Rs 1.86 lakh reduction

Seltos: Rs 75,372 cut

Carens: Rs 48,513 cheaper

Carens Clavis: Rs 78,674 cut

Carnival: Rs 4.48 lakh reduction

Skoda - Benefits up to Rs 5.8 lakh

Kodiaq: Rs 3.3 lakh GST cut + Rs 2.5 lakh festive offers

Kushaq: Rs 66,000 GST cut + Rs 2.5 lakh festive offers

Slavia: Rs 63,000 GST cut + Rs 1.2 lakh festive offers

Hyundai - Up to Rs 2.4 lakh off

Grand i10 Nios: Rs 73,808 cut

Aura: Rs 78,465 cheaper

Exter: Rs 89,209 reduction

i20: Rs 98,053 cut (N-Line Rs 1.08 lakh)

Venue: Rs 1.23 lakh cut (N-Line Rs 1.19 lakh)

Verna: Rs 60,640 lower

Creta: Rs 72,145 cut (N-Line Rs 71,762)

Alcazar: Rs 75,376 cheaper

Tucson: Rs 2.4 lakh cut

Renault - Up to Rs 96,395 off

Kiger: Rs 96,395 cheaper

Nissan - Up to Rs 1 lakh off

Magnite Visia MT: Now under Rs 6 lakh

Magnite CVT Tekna: Rs 97,300 cut

Magnite CVT Tekna+: Rs 1,00,400 cut

CNG Retrofit Kit: Now Rs 71,999 (Rs 3,000 cheaper)

Bolero Neo: Rs 1.27 lakh cheaper

XUV 3XO: Rs 1.40 lakh (petrol), Rs 1.56 lakh (diesel) cut

Thar range: Up to Rs 1.35 lakh lower

Thar Roxx: Rs 1.33 lakh reduction

Scorpio Classic: Rs 1.01 lakh cheaper

Scorpio N: Rs 1.45 lakh cut

XUV700: Rs 1.43 lakh lower

The Honda Cars India Ltd has announced that it will pass on the benefits of the GST reforms to its consumers today onwards. Here is a price reduction list:

Honda Amaze 2nd Gen: Up to Rs 72,800

Honda Amaze 3rd Gen: Up to Rs 95,500

Honda Elevate: Up to Rs 58,400

Honda City: Up to Rs 57,500

"We welcome the Government's new GST Reforms 2025 which come at a very timely juncture for the Auto industry. These progressive measures will not only make vehicles more accessible to customers but also provide a strong impetus to festive season demand. As the festive demand peaks, we encourage our customers to book now to ensure timely delivery during auspicious period and avail benefits both on account of GST reduction and current festive offers," the company's Vice President, Marketing and Sales, Kunal Behl said.

18 per cent tax: Televisions, dishwashers, washing machines, refrigerators, and air-conditioners, down from 28 per cent.

This rationalisation is likely to trigger increased purchases in the run-up to Diwali, as retailers adjust their pricing to attract middle-class households.

Indian Railways announced a price cut for the Rail Neer packaged drinking water, passing on the benefits of the historic Goods and Services Tax (GST) reforms to the passengers. According to a circular issued by the Railway Board, the price of a 1-litre bottle of Rail Neer, which is manufactured by the Indian Railway Catering and Tourism Corporation (IRCTC), has been reduced from Rs 15 to Rs 14. Meanwhile, the price of a 500 ml water bottle has been reduced to Rs 10 from the earlier price of Rs 9.

"Maximum retail price of packaged drinking water bottle 'Rail Neer shall be revised from Rs 15 to 14 per bottle of one litre and Rs 10 to Rs 9 per bottle of 500 ml capacity," read the circular.

The circular also stated that the revised MRP will also be applicable to other 'shortlisted' packaged drinking water bottles of various brands sold at railway premises and trains throughout the country.

"Maximum retail price of IRCTC/Railways shortlisted packaged drinking water bottles of other brands sold in railway premises/trains shall also be revised from Rs 15 to Rs 14 per bottle of one litre and Rs 10 to Rs 9 per bottle of 500 ml capacity."

18 per cent tax: Small cars (under 1200cc petrol, LPG, or CNG, and up to 1500cc diesel), motorcycles up to 350cc, auto components.

5 per cent tax: Electric vehicles.

28 per cent tax: Larger cars and SUVs, though this remains a reduced burden compared to earlier slabs.

Car manufacturers have begun announcing price cuts across models, aiming to capitalise on the festive season demand.

India's Goods and Services Tax (GST) system is entering a new era with the rollout of GST 2.0, effective September 22. The GST Council has simplified the tax structure into three main slabs: 5% for essentials, 18% for standard goods, and 40% for luxury or sin items, replacing the previous complex categories.

One of the biggest beneficiaries of this change is the electronics sector. Appliances such as air conditioners, refrigerators, washing machines, dishwashers, and large-screen TVs, previously taxed at 28%, will now attract 18% GST, making them significantly more affordable for the middle class.

Not all electronics saw relief. Mobile phones and laptops remain in the 18% standard slab, leaving their prices largely unchanged. Buyers looking for a cut in GST on these devices will need to rely on seasonal offers rather than tax reductions.

Hotel rooms with tariffs of Rs 7,500 or less will be cheaper by up to Rs 525 today onwards as the new GST rates kicked in. For the hotel industry, the reduction of goods and services tax (GST) rates from 12 per cent to 5 per cent without input tax credit (ITC) is a clear growth catalyst, hospitality players said, asserting that it will strengthen revenues, encourage reinvestment, and enable hotels to deliver greater value and innovation for guests across the country.

Currently, hotel rooms with daily tariff of up to Rs 7,500 attract 12 per cent GST with ITC.

According to the Hotel Association of India, the reduction in tax on hotel accommodation priced at Rs 7,500 and below will provide relief to travellers to the extent of 7 per cent on the room rate with the maximum of Rs 525 per room per night. Similarly, travellers will gain on the GST on food menus.

However, it argued that GST reforms must take a holistic, business-focused approach that retains ITC credit.

As the new GST rates kicked in today, Prime Minister Narendra Modi, in a post on X said, "This time, this auspicious occasion of Navratri is very special. Along with the GST Savings Festival, the mantra of Swadeshi is going to receive new energy during this period. Let us come together in collective efforts for the fulfillment of a developed and self-reliant India."

Nil tax: Life and health insurance premiums - fulfilling a long-pending demand of consumers.

5 per cent tax: Life-saving drugs, medical devices, thermometers, oxygen, diagnostic kits, glucometers, corrective spectacles.

Pharmacies have been directed to revise MRPs and ensure reductions are passed on immediately.

Zero tax: Chapati, paranthas, UHT milk, paneer (chena), khakra, and pizza bread.

5 per cent tax: Butter, ghee, dry fruits, cheese, sausages, meat, jams, ketchup, confectionery, biscuits, breakfast cereals, ice cream, coffee, fruit juices, and plant-based or soya milk.

This reduction from 18 per cent to 5 per cent is expected to ease household expenses significantly.

Hours ahead of the rollout of GST 2.0 reforms, Prime Minister Narendra Modi addressed the nation this evening and said two festivals are set to begin tomorrow -- Navratri and a GST savings festival.

The Prime Minister began his much-awaited address to the nation by extending Navratri greetings to the country. "Tomorrow, the festival to worship Shakti, Navratri, is starting. My greetings to all of you. On the first day of Navratri, the country is taking a big step towards Atmanirbhar Bharat," he said.

"Tomorrow, next-generation GST reforms will be rolled out. A GST savings festival is going to begin. Your savings will go up and you can buy your favourite items easily," he said, adding that the poor, the middle class, youngsters, women and traders would benefit immensely from the GST reforms.

"I congratulate crores of Indians over these reforms. These reforms will accelerate Bharat's growth story, enhance ease of doing business, attract greater investment, and ensure that every state becomes an equal partner in the nation's development," the Prime Minister said.

The Government's second major overhaul of the Goods and Services Tax (GST), referred to as "GST 2.0", comes into effect today, with a wide range of rate cuts.

The new Goods and Services Tax (GST) rates have kicked in today, with a plethora of household items, cars, bikes, and TVs, among others, becoming cheaper. The changes, the biggest overhaul since GST was introduced in 2017, will see the current 5 per cent, 12 per cent, 18 per cent and 28 per cent structure replaced with just two rates - 5 per cent and 18 per cent.

Under the new reforms, daily food and essentials, life and health insurance policies, automobiles and transport, electronics, appliances, stationery, beauty services, lifestyle services, and machinery will become cheaper. The ultra-luxury items will be taxed at 40 per cent, while tobacco and related products will stay in the 28 per cent plus cess bracket.